EXECUTIVE UPDATE / July 16, 2004

Intel Corporation has announced plans to invest up to $400 million in its Colorado Springs integrated circuit fabrication facility and to create several hundred additional jobs. Construction will begin immediately. Completion is anticipated by the end of 2005. Intel cited the superb performance of its workforce that made the local plant globally competitive during very challenging times. This will be the most significant technology industry investment that has been seen in Colorado Springs, perhaps in the entire state of Colorado, for several years.
Cheap Tickets has announced plans to close its 180-employee Colorado Springs reservation center October 1. Online travel bookings have reduced the need for its call center capacity.
Colorado has the fourth largest space economy in the nation with over 142, 500 space-related and induced jobs and $9.7 billion in annual payroll. In addition to robust launch vehicle, spacecraft and sensor production, Colorado also competes in the areas of ground control, navigation, remote sensing and data dissemination. The University of Colorado is the single largest recipient of NASA university research dollars in the nation. (Source: Colorado Space Coalition)
Colorado and Utah have the lowest risk of heart disease among the states according to a 2003 study conducted by the United Health Foundation. The study is an annual survey of each state’s overall health environment based on 17 lifestyle and environmental factors, including the prevalence of smoking, violent-crime rate, unemployment rate, access to health insurance and mortality rate. (Source: MSN Money/Insure.Com)
Executives worldwide are still upbeat about the global economy, although their enthusiasm has waned a bit in the past four months, according to the McKinsey Global Survey of Business Executives. Executives in China and India are the most optimistic. Pricing is still under pressure, but companies around the world indicate they will boost IT spending and hire new employees in the coming months. Globally, IT and telecommunications are the industries most likely to hire but least likely to raise prices.
Supply of tech talent in U.S. is a growing concern for economic competitiveness. In 2000, 38% of U.S. workers with Ph.D.s in science or engineering came from abroad. As opportunities in India, China and elsewhere increase, fewer highly skilled workers will emigrate to the U.S. and more professionals will head back home. Nearly 25% of U.S. science workers are nearing retirement. U.S. colleges and universities are turning out too few graduates to replace them. Since 1990, annual B.S. degrees in math have dropped 20%. Loosening of immigration restrictions, improved K-12 math and science education, and a focus by employers on retraining is anticipated. (Source: The Kiplinger Letter).
All jobs are not moving offshore, according to Deloitte Consulting, LLP and Synergy Real Estate Corporation who prepared the recent analysis for the Colorado Springs Airport Business Park. Projects pre-disposed to continue to deploy in the U.S. include: food manufacturing; distribution; defense, Homeland Security; critical time-to-market products; small or specialized manufacturing; entrepreneurial enterprises; small-to-medium sized enterprises; high water content product manufacturing (e.g. Windex); healthcare related industries and R&D requiring linkages to universities. Typical pre-1990’s offshoring included manufacturing and assembly and data entry. Current functions most likely to go offshore include IT applications development, coding, programming, and maintenance; finance, accounting, payroll, and other office administration activies; benefits administration; software R&D, etc. Emerging offshore functions include product design and engineering and advanced research and development.
EDC’s Beach Party on July 31 at The Broadmoor will feature a fabulous live auction. A $5,700 package at The Broadmoor, a Classic progressive dinner with Jeff, Doug, Dan and George, Italian feast for eight at Provicini, a vacation trip at a choice of resorts offered by US Home, and more. The Caribbean theme will make for a hot night not to be missed! Call (719) 475-6461 for reservations.
EDC’s 17th Annual Tournament of Teams, August 9 at Pine Creek, is filling up. Call (719) 475-6461 if you wish to register, sponsor a hole, or donate a door prize. Grand prize is a trip for two to The Greenbrier Resort in West Virginia.